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Do you prefer they Do nothing ..in a low IO world ? thats Denial...

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gonegassed

13,783 Posts.

05/03/15

12:49

Post #: 14864530
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Originally posted by pear ↑

Hi Dancing

Do not agree that this is positive. I argued a couple of years that that the re-scheduling then was a sign of trouble and was derided here.
I'll make the same point again. The re-scheduling is an admission by the Directors that they cannot meet the debt repayment when they fall due. It would be a positive if they were re-scheduled with the same maturity dates at a lower interest rate.

The re-scheduling they are doing is pushing the maturity dates out. I agree that it gives them breathing space, but the over all interest FMG will pay over all is greater than if they were able to meet the repayments of the current schedule.

To me, it is a clear sign that the Directors do not believe that iron ore price will recover in the foreseeable future.

They should have done a capital raising when FMG was above $5. But, as our esteemed chairman has 1/3 of the company, I can understand why it did not take place.

Pear

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Do you prefer they Do nothing ..in a low IO world ? thats Denial
Do you prefer they Don't refinance and lock in at lower rates ? that would be Dumb
Do you prefer them to keep to the 2019 repayment schedule ? thats too Tight

Where will IO prices + Supply + Demand be by 2020 ????? UP ??
A ; Yes

FMG Price at posting: $2.31 Sentiment: Buy Disclosure: Held
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Last $18.36		Change 0.390(2.17%)		Mkt cap ! $56.49B

Open	High	Low	Value	Volume
$18.11	$18.40	$18.10	$46.87M	2.568M

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No.	Vol.	Price($)
7	1279	$18.35

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Price($)	Vol.	No.
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No.	Vol.	Price($)
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23	11775	18.300
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Price($)	Vol.	No.
18.320	6951	10
18.330	7237	12
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